Which coverage provides financial protection in the event of an accident causing injury to others?

Liability coverage is specifically designed to provide financial protection in scenarios where the policyholder is responsible for causing injury or damage to others in an accident. This type of coverage pays for the medical expenses of the injured party and covers any legal fees that may arise from claims made against the insured. It is mandatory in many states to carry a minimum level of liability coverage, as it protects not only the at-fault driver but also the victims of the accident, ensuring they receive compensation for their injuries and related expenses.

In contrast, comprehensive coverage protects against non-collision-related incidents such as theft, vandalism, or natural disasters. Collision coverage deals with damages to the policyholder's own vehicle resulting from an accident, regardless of who was at fault. Medical coverage generally focuses on covering the medical bills of the policyholder and their passengers, rather than providing protection to others affected by the policyholder's actions. Therefore, liability coverage is the correct answer as it is directly aimed at covering the financial repercussions related to injuries inflicted on others during an accident.